ISLAMABAD: The chairman of the Senate Standing Committee on Information Technology and Telecommunication criticised telecom companies for not spending much on Corporate Social Responsibility (CSR) and insisted that there had to be some mandatory amount to be paid by telcos to uplift underdeveloped areas.

Senator Kauda Babar also asked the Ministry of IT and Telecommunication to prepare a draft regulatory framework for mobile cellular companies and compared the IT sector’s CSR spending with that of energy and mining companies.

Another panel member, Senator Sania Nishtar, referred to the research and development funds of the telecom companies deposited to the government and stressed that this fund should be used for social uplift, including women empowerment.

However, representatives of the four telecom companies told the Senate body that there was a difference between funds for CSR and research and development.

Members of finance of the Pakistan Telecommunication Authority informed the Senate panel that telecom companies deposited around Rs10 billion each year in the Universal Service Fund (USF).

The USF is a subsidiary of the IT ministry to expand the internet and telecom services to remote areas of the country where the business case was not viable. The fund comprises 1.5 per cent of the adjusted revenues of the telecom operators.

However, Mr Babar insisted that it was a government fund and the mobile telecom sector was enjoying the support of the government.

The additional secretary of the IT ministry informed the panel that a non-profit company Ignite, owned by the government and administered by the IT ministry, was already there to promote startups and establish incubation centres to facilitate young IT experts to become entrepreneurs.

Moreover, the CSR activities included setting up a smart village in Islamabad, which will be replicated in remote villages of Punjab and Khyber Pakhtunkhwa.

Published in Dawn, June 17th, 2023